‘Net Metering’: An innovation to slash electricity bills

Over two years of its launch in Andhra Pradesh, ‘Net Metering’ system may soon be taken up by other states of India.

[icon name=”icon-question-sign”]What is ‘Net Metering’?

Net Metering is an eco-friendly idea that encourages the power consumers to adopt the generation of solar power to manage their demand and supply of electricity. In this process, the consumers not only generate power for their own needs but also get paid for the excess power generated by their solar Photovoltaic systems (PV systems). The excess electricity is send to the central grid which pays for the energy thus generated.

[icon name=”icon-question-sign”]How ‘Net Metering’ works?

The electricity generated by the PV systems serves the immediate energy needs of your home and slashes your monthly electricity bill. Any extra power your home needs—day or night—is automatically supplied by PG&E. The excess electricity generated by your system, but your home does not use, is exported back to the electric grid.

[icon name=”icon-question-sign”]Why is it called ‘Net Metering’?

Net Metering system is a billing mechanism that credits solar energy system owners for the electricity they contribute to the grid. For example, if a residential customer owns a PV system, it may generate more electricity than the home uses during daylight hours. If the home is net-metered, the electricity meter will run backwards to provide a credit against what electricity is consumed at night or other periods where the home’s electricity use exceeds the system’s output. Customers are only billed for their “net” energy use. Generally, only 20-40% of a solar energy system’s output ever goes into the grid.

[icon name=”icon-question-sign”]What are the benefits of Net Metering?

Eco-friendly as it doesn’t generate harmful emissions

Reduces dependence on conventional energy sources

Provides electricity to power deficient homes

Encourages generation of solar energy by power consumers through incentives like negative bills and credits to surplus producers.